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The Impact of Transformational and Transactional Leadership Style on

Employee Job Satisfaction

Article in International Journal of Business and Administrative Studies · September 2022

DOI: 10.20469/ijbas.8.10001-3

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 International Journal of Business and Administrative Studies
volume 8 issue 3 pp. 113-126 doi: https://dx.doi.org/10.20469/ijbas.8.10001-3

The Impact of Transformational and Transactional Leadership Style

on Employee Job Satisfaction
Adi Skopak∗ Nereida Hadzaihmetovic
International Burch University, International Burch University,
Sarajevo, Bosnia, and Herzegovina Sarajevo, Bosnia, and Herzegovina

Abstract: The purpose of this study is to research and examine the relationship between leadership styles and job
satisfaction of employees in the food industry in Bosnia and Herzegovina. As a quantitative research study, the survey
method is used with a developed questionnaire for the primary data collection. The questionnaire is adopted from
valid sources, contributing to leadership and job satisfaction worldwide. Using the convenience sampling method, 210
valid responses are obtained and analyzed using the Software Package for Social Sciences (SPSS). Transformational
and transactional leadership styles contribute to employees’ job satisfaction in food industry companies in Bosnia and
Herzegovina. The results showed that contingent reward contributes to job satisfaction when it comes to transactional
leadership style, while idealized influence, inspirational motivation, intellectual stimulation, and individualized con-
sideration contribute to job satisfaction when the transformational leadership style is practiced. This research can be
applied in any company, with particular benefits for human resource management. The practical implications of this
research indicate that the answers to the questions asked fully supported the assumption of the importance of choosing
leadership style as the company’s essence. The findings of this research contribute to the overall image and information
on the relationship between leadership styles and job satisfaction. This study also lays the groundwork and serves as a
starting point for future research and examining the relationship between leadership styles and job satisfaction. This
study’s data is useful for Bosnia and Herzegovina’s food industry, as there has previously been no data recorded.

Keywords: Leadership, leadership styles, transactional leadership, transformational leadership, job satisfaction,
food industry, Bosnia and Herzegovina

Received: 10 March 2022; Accepted: 02 July 2022; Published: 03 September 2022

INTRODUCTION
According to Jones and George (2016), leadership is the practice whereby an individual pursues influence over
others and empowers, stimulates, and supervises their tasks to help accomplish organizational or group goals. An
individual who possesses such authority is referred to as a leader (Jones & George, 2016). Different "leaders behave in
different ways. The second decade of the 21st century has been revolutionary in many aspects, requiring adaptation
and new approaches to people and methods of doing business. Building a motivating environment can be one of the
greatest challenges organizations can face as a motivated, satisfied and committed workforce is harder to find and
create. This leaves managers with constant evaluations, experiments, and adaptations to different people, including
their behavior, attitudes, personalities as well as cultures, traditions, habits, and experiences; hence there are many
different approaches to leadership through types and styles of leading, which can be of crucial value and importance for
∗ Correspondence concerning this article should be addressed to Adi Skopak, International Burch University, Sarajevo, Bosnia, and Herzegov-
ina. E-mail: adiskopak@gmail.com

c 2022 The Author(s). Published by KKG Publications. This is an Open Access article distributed under a Creative Commons Attribution-
NonCommercial-NoDerivatives 4.0 International License.
 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022 114

employees’ satisfaction and good work performance and outcome.

Previous leadership research has established multiple different leadership styles. They are best known for behavioral
models, i.e., a division into authoritarian, democratic, and Laissez-faire styles of leadership, and into Likert systems,
i.e., an exploitative-authoritative, benevolent-authoritative, consultative, and participatory system. Leadership styles can
still be classified into a trait, situational, and contemporary leadership models. Different leadership styles are defined
as the behaviors leaders exhibit while working with and through others (Fauzia, Farooq, & Farooq, 2012; Hersey &
Blanchard, 1982), as a pattern of interactions between the leader and his subordinates. Based on Bryman (1992), many
scientists, as well as practitioners, make it clear that leadership is one of the most important and least understood
phenomena, if not the most important factor influencing employee ethics and integrity and the role of the leader as a
role model for employees (Khan, Akbar, Jam, & Saeed, 2016; Madlock, 2006; Waheed & Kaur, 2019). Riaz and Haider
(2010) expressed how leadership is crucial in improving organizational performance. According to Deschamps (2005),
it is first necessary to investigate whether there is a specific, i.e., recognizable form of leadership that can influence the
development of innovative ideas. Deschamps (2005) explains, comparing world-award-winning innovation leaders,
that those who create and manage innovation processes, especially compared to other excellent but more traditional
business leaders, note they have different human and managerial characteristics. The difference between a leader and a
manager is explained by Myers and Mullet (2003): "Leaders are people who do the right thing, managers are people
who do things the way they should be done."
Leadership theories generally state that when leaders can lead successfully with the appropriate leadership style in
the situation they find themselves in, they have high performance and their employees or subordinates are satisfied
with their work. On the other hand, given that employees are a very important resource in the 21st century, Jones and
George (2016) suggest that leaders must know and understand people. They must discover their abilities, strengths, and
everything that motivates them. In short, they must acknowledge that everyone is different and deal with each employee
as an individual in a comprehensive way (Jam, Donia, Raja, & Ling, 2017; Locke, 1976; Waheed & Hussain, 2010). To
successfully achieve the research objective, further research is needed through which it is possible to link the way of
running a company and employees and the level of employee satisfaction in the food industry, as well as to examine
the significance of one variable for another. Therefore, this research will try to offer new insights into the mentioned
connection. Leadership styles that will be examined throughout this research are transformational leadership style and
transactional leadership style.
Work is typically defined as a planned and organized human activity to attain certain positive outcomes that meet
various individual and social requirements (Ahmad & Waheed, 2015; Farooq, Akhtar, Hijazi, & Khan, 2010; Allen,
Porter, & Angle, 2003; Waheed, Kaur, & Qazi, 2016). Work’s relevance can be seen from various perspectives,
including economic, social, psychological, and pedagogical. Work, first and foremost, ensures an individual’s survival
and that of others who rely on him or her. Work also allows an individual to interact socially with his coworkers and is
undoubtedly a source of social status and prestige, as well as having intrinsic worth for the individual as a source of
identity, self-respect, and self-actualization. As a result, work can also be regarded as a core human value. Labor values
are general and long-term goals that individuals aspire for or attempt to achieve with their labor force (Jam, Khan,
Zaidi, & Muzaffar, 2011; Haq, Ramay, Rehman, & Jam, 2010; Moore, 2007; Waheed, Kaur, & Qazi, 2016). These
hypothetical constructs aid in behavior analysis but cannot be observed firsthand.
Furthermore, value orientations are a collection of extrinsic and intrinsic values that can be used to create organiza-
tional value. As a result, certain values take on an urgent shape, affecting the establishment of value orientations. For
instance, a set of extrinsic working values reflected in material salary, material perks, and advancement preferences
integrate the functional and logical connection of the utilitarian value orientation. In empirical research, this orientation
is determined by answers where respondents favor various forms of benefits, including non-material ones, that is, in the
preferences of these forms of extrinsic working values (Waheed & Kaur, 2016; Waheed, Kaur, & Kumar, 2016).

Objectives of the Study

This research aims to examine employee job satisfaction in the food industry in Bosnia and Herzegovina. The
research attempts to expand and reinforce earlier studies by investigating the impact of transformational and trans-
actional leadership styles on job satisfaction in the food industry. This research is also designed to expand on past
studies by establishing a relationship between transformational and transactional leadership styles and job satisfaction.
Furthermore, the purpose of this research is to cover the remaining literature gaps:
115 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022

• Leadership styles and their influence on job satisfaction have not been researched sufficiently in the context of
the food industry, especially in the region of Eastern European countries. This study will fill the literature gap
concerning Bosnia and Herzegovina and the food industry.
• This study contributes to the literature by carefully analyzing transactional and transformational leadership styles
and their application and effects in the food industry.
• It aims to find which characteristics and elements of leadership impact employees the most and how it influences
their job satisfaction.

Research Problem/Novel Contribution

Exhaustion and frustration at work due to an absence of interest, engagement, responsibility, or authority lead to
low quality of work and low productivity from the employer’s perspective. An empirical study in Pakistan examined
job productivity in toxic workplace environments and showed that ostracism, incivility, harassment and bullying have a
direct negative effect on job productivity (Anjum, Ming, Siddiqi, & Rasool, 2018). Therefore, psychological distress on
the part of the employee, along with the aforementioned elements, can result from a lack of an accurate leadership
style that shapes both the employer and the employee. This is why Anjum et al. (2018) research suggested and
encouraged managers to apply effective techniques of leadership styles and work on building a relationship with their
employees. Furthermore, the findings of Roelofsen (2002) study imply that relationships are an important element and
an aid regarding the increase in productivity in the workplace, which increases the importance of analysis of different
leadership styles in the workplace and their impact on job satisfaction. Factors that could contribute to the quality
of this research would be the division of food industry companies into branches that could give a clear vision of the
practiced leadership styles in specific branches of the food industry. In addition, it would be interesting to analyze the
variable relationship in different regions of Bosnia and Herzegovina, either by entity or canton. Future research could
strengthen this study’s findings, the proposed model’s validity, and the relationship found in this research study.

LITERATURE REVIEW
The literature review presented in this paper is examined chronologically and in tabular form (Table 1).

Table 1 RESEARCH INTO RELATIONSHIPS AMONG TRANSFORMATIONAL LEADERSHIP STYLE, TRANSACTIONAL LEAD-
ERSHIP STYLE, AND JOB SATISFACTION

Researchers Themes Findings

Chen (2004) This research discusses the impact of or- According to the study’s key conclusions, followers were
ganizational culture and leadership prac- satisfied with the contingent reward characteristic of transac-
tices on organizational commitment, job tional leaders and promoted reflection on transformational
satisfaction, and ability to do the job in leaders.
Taiwanese small and medium enterprises.
The research looked at particular employee
habits linked with transactional and trans-
formational leadership and how they con-
trol and mediate the impacts of business
culture and ethics.
Riaz and Haider This research aimed to study the effect of Results of this research suggest that all factors have signifi-
(2010) transformational and transactional leader- cant tendencies, with a notable association between trans-
ship styles on job and career satisfaction in
actional leadership and job success, while transformational
private companies in Islamabad, Pakistan. leadership and job satisfaction are highly related to career
fulfillment.
Hamidifar (2010) This research intended to find how differ- According to the research survey, the most common lead-
ent leadership styles affect employee job ership styles were transformational and transactional, and
satisfaction at the 16 campuses of Islamic workers were fairly content with their jobs.
Azad University in Tehran, Iran.
 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022 116

TABLE 1 CONTINUE....

Researchers Themes Findings

Voon, Lo, Ngui, and Ayob The research explored the influence of
(2011) transformational and transactional leader-
ship styles on job satisfaction in Malaysian
government enterprises.
Shi, Chen, Xu, and Jones The research examined the impact of trans-
(2012) formational and transactional leadership in
China’s higher learning institutions.
Spitzbart (2013) The research examined how transactional
vs. transformational leadership influences
job satisfaction in the hotel business.
Sakiru, D’Silva, Othman, The research examines leadership styles
DaudSilong, and Busayo and job satisfaction in Nigerian small and
(2013) medium-sized businesses.
Pourshahid, Johari, Richards, The study aimed to examine the influence
Amyot, and Akhigbe (2014) of transactional leadership style on job sat-
isfaction in the banking sector of Nigeria.
Alonderiene and Majauskaite This study aimed to investigate the influ-
(2016) ence of leadership style on faculty job sat-
isfaction in Lithuanian higher education in-
stitutions.
This study’s findings suggest that transformational leader-
ship style and job satisfaction have a greater association
than transactional leadership style and job satisfaction.
According to the study’s results, there is a strong correlation
between transformational leadership and leadership efficacy,
which incorporates job satisfaction, and some strong rela-
tions between transactional leadership and leadership effi-
ciency. The study compares two leadership styles, revealing
that transformational leadership might provide significant
variance in anticipating job satisfaction.
The analysis revealed that both transactional and transfor-
mational leadership had a significant beneficial influence
on work satisfaction. Further findings showed that leaders
should be conscious of their leadership style and workforce
needs.
According to the research findings, the mixture of trans-
formational and transactional leadership styles is the most
beneficial in employee job satisfaction, though the analysis
also showed that transformational leadership style is more
typically implemented in Nigerian small and medium firms.
According to the findings of this study, the transactional
leadership style boosts employee job satisfaction; however,
contingent reward and active management by exemption
often don’t.
According to the results of a study, leadership styles at
Lithuanian universities influence work satisfaction. Fur-
thermore, it has been discovered that servant leadership
has the greatest influence on work satisfaction, whereas
authoritarian leadership has the least impact.

Puspa et al. (2019) This study aimed to look at the impact of The research reveals a positive correlation between organi-
transformational leadership style on job sat- zational commitment and transformational leadership and
isfaction and organizational commitment. also a positive correlation between transformational leader-
ship and job satisfaction.
Abelha, Carneiro, and Cava- They have researched the impact of organi- The study’s results indicate that the relationship between
zotte (2018) zational contextual factors and individual transformational leadership style and job satisfaction is mod-
characteristics on the relationship between erated by the followers’ gender, which is stronger for female
transformational leadership and job satis- followers. At the same time, it is not affected by the follow-
faction. ers’ area of professional training or type of organization.
Kouni, Koutsoukos, and This study investigates the effect and contri- The study results imply that the teachers’ job satisfaction
Panta (2018) bution of transformational leadership style is higher when their supervisor acts as a transformational
on the job satisfaction of secondary educa- leader.
tion teachers in Greece.
Lan, Chang, Ma, Zhang, and The research focuses on the effects of trans- According to the study, people who work under transfor-
Chuang (2019) formational leadership, transactional lead- mational leadership have a greater favorable effect on their
ership, and authoritarian leadership on job overall job happiness.
satisfaction among Cram School academic
staff in New Taipei City, Taiwan.
117 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022

TABLE 1 CONTINUE....

Researchers Themes Findings

Bolyen et al. (2019)
Widodo, Silitonga, and Azahra
(2019)
Mwesigwa, Tusiime, and Ssek-
iziyivu (2020)
Abd Rahman (2021)
Mahmood, Arshad Ali, Nazam,
and Nazim (2021)
Belias, Rossidis, Papademetriou,
and Mantas (2022)
Sunarsi, Paramarta, Munawaroh,
Bagaskoro, and Evalina (2021)
(Allozi, Alshurideh, AlHamad, &
Al Kurdi, 2022)
Aras and Jufri (2022)
The influence of transactional and trans- According to the outcomes of the study, transformational
formational leadership styles on employee and transactional leadership are significantly positively
satisfaction in multinational corporations and significantly associated with employee job satisfac-
was explored in this research. tion. Consequently, people who are satisfied with their
jobs are likely to perform better when transformational and
transactional leadership are involved. The researchers em-
phasized the necessity of both leadership styles as crucial
to employee job satisfaction, which can contribute to orga-
nizational effectiveness.
The research examined the impact of trans- According to the findings of this study, transactional leader-
actional leadership on employee work moti- ship can boost employees’ job satisfaction.
vation and satisfaction at the Jakarta Stock
Exchange.
They researched Leadership styles, job sat- This research has shown a strong correlation between job
isfaction, and organizational commitment satisfaction, leadership styles, and organizational commit-
among academic staff in public universi- ment showing that job satisfaction partially mediates the
ties. relationship between leadership style and organizational
commitment.
This research aimed to evaluate the correla- According to the results of a study, transformational and
tion between leadership styles and job sat- transactional leadership are highly correlated with job sat-
isfaction among Malaysian private-sector isfaction. It was proven to have a beneficial influence on
employees. The transformational and trans- forecasting job satisfaction.
actional leadership styles were applied for
analysis.
The research explored college professors’ According to the research results, there is a link between
transformational and transactional leader- transformational and transactional leadership styles and
ship styles and their job satisfaction. job satisfaction. However, there is a strong link between
transformational leadership style and job satisfaction.
This study investigates how job satisfaction The study findings showed a positive relationship between
is affected by transformational leadership the implementation of leadership styles and job satisfaction,
style in the Greek Tourism sector. where employees recognized their managers’ striving for
effective cooperation within their workplace by applying a
transformational leadership style.
Sunarsi et al. (2021) examined the effect of This research showed a positive effect of transformational
leadership style, where they choose trans- leadership style on job satisfaction, while transactional lead-
formational and transactional leadership, ership was proved to have no significant effect on employee
on job satisfaction in information technol- satisfaction.
ogy industries.
This study investigated the impact of trans- Study findings show that transformational leadership has a
formational leadership on job satisfaction, significant and positive impact on job satisfaction, whilst
where moderating role taken into account organizational commitment as moderating role had no sig-
was organizational commitment. The study nificance.
was conducted in UAE and considered Jor-
dan manufacturing companies.
This study explored the effects of Lead- The results of this study show that the transformational style
ership Style on Employees’ Job Satisfac- contributes the most to employees’ job satisfaction.
tion aiming to understand various leader-
ship styles in the organizational leadership
hierarchy.

Conceptual Framework and Hypotheses Development

The purpose of this research was to prove practically and theoretically the impact of transformational and transac-
tional leadership styles on employee job satisfaction in the food industry in Bosnia and Herzegovina. According to
previous research, genuine leaders have the power to boost staff motivation, participation, job satisfaction, loyalty, and
engagement, all of which promote better outcomes (Avolio, Zhu, Koh, & Bhatia, 2004).
 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022 118

Some previous studies have investigated the impact of different leadership styles on job satisfaction. Most previously
conducted studies show a strong relationship and correlation between transactional and transformational leadership
styles and job satisfaction. The difference in research results mostly depends on the environment and research target
groups that affect the level of correlation between distinctive leadership styles and the level of job satisfaction.
Silins and Mulford (2002) found that the transformational leadership style is better suited for the educational
environment as it positively influences teachers whose job satisfaction level is exemplary. This research supported
Rossmiller (1992) conclusion that teachers’ perception of principals’ transformational leadership skills strongly influ-
ences teachers’ job satisfaction. Rossmiller (1992) has discovered that school principals who practice transformational
leadership are more able to develop and increase job satisfaction among professors than those who do not (Long &
Thean, 2011). Hamidifar (2010) explored how leadership styles influence employee job satisfaction at the 16 Islamic
Azad Universities in Iran and found that the dominant leadership styles were transformational and transactional, where
employees were satisfied with their job. Shi et al. (2012) conducted another study in the academic sector. Their research
showed a highly significant relationship between transformational leadership and leadership effectiveness, which takes
into account job satisfaction and a strong link between transactional leadership and leadership effectiveness.
Furthermore, the study compares the two leadership styles, revealing that transformational leadership might explain
the additional variance in forecasting job satisfaction. Alonderiene and Majauskaite (2016) investigated the influence of
leadership style on faculty job satisfaction in Lithuanian higher education institutions. According to the study’s findings,
leadership styles at Lithuanian universities have an impact on job satisfaction. Additionally, it has been established
that servant leadership has the greatest influence on job satisfaction, whereas autocratic leadership has the slightest
influence.
Voon et al. (2011) research studied the impact of transactional and transformational leadership styles on job
satisfaction in public sector organizations in Malaysia, where transformational leadership style has a stronger connection
with job satisfaction. This study implies that the transformational leadership style is deemed applicable in the
management processes of governmental organizations. On the other hand, a study by Pourshahid et al. (2014) regarding
transactional leadership style and its impact on employee satisfaction showed that transactional leadership style
positively contributes to employee job satisfaction. The findings presented include a conclusion that contingent reward
and active management by exemption enhance employee satisfaction while passive management by exemption does
not (Pourshahid et al., 2014). Riaz and Haider (2010) also investigated the role of transformational and transactional
leadership styles on job satisfaction and career satisfaction. Their findings show positive trends in all variables, with a
significant relationship between transactional leadership and job success, while transformational leadership and job
success are highly related to career satisfaction (Riaz & Haider, 2010). One of the latest studies considering specifically
transformational and transactional leadership styles which impact job satisfaction was conducted by Mahmood et al.
(2021), whose findings are that even though there is a relationship between the three variables, a significant connection
was found between transformational leadership style and job satisfaction. Despite most research showing a relationship
between the aforementioned leadership styles and job satisfaction, a study conducted in Slough, United Kingdom, has
shown different findings where transformational leadership style has a positive effect on job satisfaction.
In contrast, the transactional leadership style does not significantly affect job satisfaction in the retail sector
(Asghar & Oino, 2018). So far, research that showed a strong relationship between all three variables, transformational
leadership style, transactional leadership, and job satisfaction, was conducted by Spitzbart (2013), who examined the
relationship in the hotel industry, and Sakiru et al. (2013) who examined the relationship between variables in small
and medium enterprises in Nigeria. Both studies showed the strong positive impact of both leadership styles and that
the combination of the two has proved to have the best influence on the job satisfaction of employees (Sakiru et al.,
2013; Spitzbart, 2013).

Hypotheses
H1: Transformational Leadership has a positive impact on Employee Job Satisfaction
H1a: Contingent reward has a positive impact on Employee Job Satisfaction.
H1b: Active management by exception positively impacts Employee Job Satisfaction.
H1c: Passive management by expectation positively impacts Employee Job Satisfaction.
H2: Transactional Leadership has a positive impact on Employee Job Satisfaction
119 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022

H2a: Idealised influence has a positive impact on Employee Job Satisfaction

H2b: Inspirational motivation has a positive impact on Employee Job Satisfaction
H2c: Intellectual stimulation has a positive impact on Employee Job Satisfaction
H2d: Individualised consideration has a positive impact on Employee Job Satisfaction

METHODOLOGY
Samples and Procedures
Employees in the food industry are the research’s target population. Survey respondents are hired and under
the observation of a leader. Chosen companies are located in Bosnia and Herzegovina. The survey instrument was
developed and distributed to all sample members via telephone and email. 547 people were contacted, and 216 valid
responses were collected.
The survey was composed of 51 questions, where 8 questions were related to the demographic information of
participants. To assess survey questions, a five-point Likert scale was used. In the Likert scale, 1 was used for the label
"Strongly Disagree," while 5 was used for "Strongly Agree."
Most of the respondents, particularly 30%, were between 20-25 years old, whilst 21% were 30-35 years old. Other
age groups took 18.6%, 18.1%, and 11.4% in particular 26-29, 36-40, and above 40 respectively.
More respondents were male, in particular 132 of them taking up 62.9% of the respondents’ group. The majority of
the respondents have obtained their Bachelor’s degree, particularly 121 of them taking up 57.6%, while the next biggest
group were individuals who obtained a Master’s degree, in particular 67 of them taking up a total of 31.9%.
The work experience of the respondents is mostly less than 5 years, counting for 41.4%, whereas experience at
the current company is between 5 and 10 years, counting for 42.4% of the total respondents. Table 2 summarizes the
sociodemographic characteristics of the respondents.

Table 2 SOCIODEMOGRAPHIC PROFILE OF RESPONDENTS

Variable Demographics Count Percentage

20-25 63 30.0%
26-29 39 18.6%
Age 30-35 46 21.9%
36-40 38 18.1%
Above 40 24 11.4%
Male 132 62.9%
Gender
Female 78 37.1%
Doctorate Degree 5 2.4%
Master’s Degree 67 31.9%
Education Level
Bachelor’s Degree 121 57.6%
High School 17 8.1%
Less than 5 years 87 41.4%
5-10 years 55 26.2%
Total Work Experience
10-15 years 41 19.5%
More than 15 years 27 12.9%

Measures
All survey questions were gathered from the relevant and reviewed literature. The validity and quality of the
selected questions were tested in existing research. Questions were originally developed in the English language and
were translated into the Bosnian language.
The survey consisted of four sections. Questions in the first section investigated the demographic background of
the participants. Questions in the second section were related to the transactional leadership style, and the third section
 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022 120

of questions was related to the transformational leadership style. The fourth section was designed to assess information
regarding the job satisfaction of participants in companies they are currently employed.
Scales developed from the Multifactor Leadership Questionnaire (MLQ) published by Bass (1990) and applied
in Rothfelder, Ottenbacher, and Harrington (2012) scientific research was used to evaluate leadership behavior. Job
satisfaction was measured using an eight-item scale developed by Rothfelder et al. (2012) and based on scales
established by Brown and Peterson (1993) and Clark, Hartline, and Jones (2009).

RESULTS/FINDINGS
A total of 210 people answered the 53-item questionnaire, which included demographic questions. Before
conducting the analysis, the questionnaire’s reverse questions were reversed.
A quantitative analysis of collected data was performed using descriptive analysis, where mean, minimum and
maximum value, standard deviation, and variance were included. According to the data, the responses were consistent
throughout the questionnaire. Table 3 shows descriptive statistics containing the number of responses, measurement
scale, mean, standard deviation, and variance. All valid and completed questions were selected and imported into the
statistical software IBM’s SPSS.
Reliability analysis of this research was performed before deriving conclusions and hypothesis testing from the
obtained data. Reliability analysis is related to the survey evaluation as a pre-condition of the data analysis process.
Cronbach’s Alpha for the instrument used in this research is shown in Table 4 for each variable and is .991 for
Transactional Leadership Style, .991 for Transformational Leadership Style, and .982 for Employee Job Satisfaction.
The results of Cronbach’s Alpha for the variables imply consistency and reliability, indicating how reliable the research
instrument is. Since the results of Cronbach’s Alpha for all study variables are closer to 1, the measurement scale is
more reliable.
Table 3 DESCRIPTIVE ANALYSIS

Variable Dimension Cronbach’s Alpha

Contingent reward .976

Transactional Leadership Style Active management by exception .982
Passive management by exception .960
Idealized influence .974
Inspirational motivation .980
Transformational Leadership Style
Intellectual stimulation .978
Individualized consideration .977
Employee Job Satisfaction Employee Job Satisfaction .982

Linear Regression Analysis was performed to analyze the study results, showing the interconnection between
observed variables, expressed in the form of collected data. As a result, the analysis produces a regression equation
where results can provide information on the variables and their surroundings. Tables 5 and 6 show the Model Summary
of the Regression Analysis performed for this research study.
121 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022

Table 4 MEAN, STANDARD DEVIATION, AND CORRELATIONS BETWEEN DEPENDENT VARIABLE AND THE TRANSFOR-
MATIONAL AND TRANSACTIONAL LEADERSHIP STYLE

Variables M SD CR AME PME II IS INS IDS ES

Contigent reward 3.73 1.062 1

Active management by exception 3.802 1.022 .983** 1
Passive management by exception 3.218 1.039 .969** .969** 1
Idealized influence 3.434 0.945 .964** .956** .985** 1
Inspirational stimulation 3.956 0.891 .974** .975** .963** .946** 1
Intellectual stimulation 3.88 0.823 .970** .961** .969** .963** .981** 1
Individualized stimulation 3.694 0.885 .974** .965** .977** .980** .960** .980** 1
Employee satisfaction 3.833 0.887 .979** .986** .980** .971** .982** .979** .980** 1
CR = Contigent reward, AME = Active management by exception, PME = Passive management by exception, II = Idealized influence,
IS = Inspirational stimulation, INS = Intellectual stimulation, IDS = Individualized stimulation, ES = Employee satisfaction

Table 5 REGRESSION ANALYSIS FOR TRANSACTIONAL LEADERSHIP STYLE WITH EMPLOYEE JOB SATISFACTION AS
THE OUTCOME VARIABLE

Predictors Beta t p F df p R2

Overall model 3826.47 3 <.001 0.986

Contigent reward 0.128 2.395 0.018
Active management by exception 0.496 9.245 <.001
Passive management by exception 0.375 9.273 <.001

Table 6 REGRESSION ANALYSIS FOR TRANSFORMATIONAL LEADERSHIP STYLE WITH EMPLOYEE JOB SATISFACTION
AS THE OUTCOME VARIABLE

Predictors Beta t p F df p R2

Overall model 3237.470 4 <.001 0.984

Idealized influence 0.189 4.284 <.001
Inspirational motivation 0.582 12.772 <.001
Intellectual stimulation -0.137 -2.157 0.032
Individual consideration 0.371 6.165 <.001

Referring to the Model Summary, the coefficient of correlation is strong (R = .991), meaning that the correlation
between Transactional Leadership Style and Job Satisfaction is strong, as well as between the Transformational
Leadership Style and Job Satisfaction. Since this model implies two independent variables, we will concentrate on
the result of Adjusted R Square (.982), which implies that 98.2% of the variability in the level of job satisfaction is
explained by the model itself or by Transformational Leadership Style and Transactional Leadership Style. Furthermore,
the ANOVA F value (3826.474) shows the research model’s high significance, indicating p at <.001.
The unstandardized beta coefficient for Transformational Leadership Style (1.004) indicates that an increase or
improvement in Transformational Leadership Style will contribute to an increase in Job Satisfaction. p-Value (Sig.
column) < .001 indicates supportive results for Transformational Leadership Style with Job Satisfaction concluding that
H1 is supported.
Unstandardized beta coefficients for Transactional Leadership Style (.852) indicate that increase or improvement in
Transactional Leadership Style will contribute to the increase in Job Satisfaction by 85.2%. p - Value (Sig. column)
 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022 122

<.001 indicates supportive results for Transactional Leadership style concerning Job satisfaction, concluding that H2 is
supported.

DISCUSSION/ANALYSIS
This study examined the impact of leadership styles, in particular transactional leadership style and transformational
leadership style, on job satisfaction in food industry companies in Bosnia and Herzegovina. According to the study’s
results, transformational and transactional leadership styles contribute to employees’ job satisfaction in food industry
companies in Bosnia and Herzegovina. The results showed that contingent reward contributes to job satisfaction when it
comes to transactional leadership style, while idealized influence, inspirational motivation, intellectual stimulation, and
individualized consideration contribute to job satisfaction when the transformational leadership style is practiced. The
results support various research that has been previously done on similar topics, especially considering transformational
leadership style and its strong positive connection with job satisfaction such as Allozi et al. (2022); Aras and Jufri
(2022); Mahmood et al. (2021); Sunarsi et al. (2021); Widodo et al. (2019). Aras and Jufri (2022) research also
proved the positive relationship between transformational leadership style and job satisfaction, where employees felt
significantly satisfied when their supervisor practiced characteristics of transformational leadership style. In addition,
Allozi et al. (2022) had similar results where in UAE and Jordan manufacturing companies, employees show higher job
satisfaction when they are working under a manager who is acting as a transformational leader; this study, however,
showed that organizational commitment as the moderating role had no significance concerning job satisfaction. Sunarsi
et al. (2021) conducted a study that showed a positive effect of transformational leadership style on job satisfaction,
while transactional leadership style was proved to have no significant effect on employee job satisfaction. Mahmood et
al. (2021) also confirm a strong positive relationship between transformational leadership style and job satisfaction in
their study, analysing college professors’ leadership styles and job satisfaction.
Many previously conducted studies confirm this study results as a general analysis of the relationship between
leadership styles and job satisfaction in management, such as Abelha et al. (2018); Abd Rahman (2021); Bolyen et al.
(2019); Lan et al. (2019); Mwesigwa et al. (2020); Puspa et al. (2019). The mentioned studies have shown a positive
relationship between applying leadership styles in organizations and their positive contribution to job satisfaction, with
mediators such as organizational commitment, business culture, and ethics. When it comes to the measurement of job
satisfaction, many studies have been done worldwide. However, a very low number of studies are done for Eastern
Europe, especially Bosnia and Herzegovina. Despite the popularity of job satisfaction and leadership as management
topics, there have not been many studies considering the food industry. In addition, Bosnia and Herzegovina has an
interesting country profile considerably for examining the relationship between the set variables and poses an interesting
case; therefore, the obtained data and results will certainly contribute to the academic research on the business and
management situation of Bosnia and Herzegovina.

THEORETICAL IMPLICATIONS
The application of the Transactional Leadership style or Transformational Leadership style has significant theoretical
implications. One theoretical implication of using the Transactional Leadership or Transformational Leadership style
is that these particular leadership styles will provide employee satisfaction, as proven by research. When it comes to
transactional leadership style, the results show that contingent reward contributes to job satisfaction, whereas when
transformational leadership style is used, idealized influence, inspirational motivation, intellectual stimulation, and
individualized consideration contribute to job satisfaction.

PRACTICAL IMPLICATIONS
The term "practical" literally means "real outcomes." The reality that would occur if certain circumstances were met
is a practical implication. For example, when analysts perform behavioral studies, the accuracy with which they gather
data has practical ramifications for determining the efficacy of various behavioral therapies. Considering the practical
ramifications of a variety of alternatives might assist in determining which ones generate the desired outcomes.

CONCLUSION
This study’s objective was to show a positive relationship between leadership styles and job satisfaction in the
food industry in Bosnia and Herzegovina, which was successfully confirmed. The positive relationship could pose
123 Skopak, A. et al. / International Journal of Business and Administrative Studies 8(3) 2022

an interesting case for further research and examination due to the lack of data and information on food industry
management in Bosnia and Herzegovina. Another interesting element of this research is the country profile of Bosnia
and Herzegovina, as it is a country in transition. This research also has confirmed prior research that showed a positive
relationship between leadership styles and job satisfaction, both for transactional and transformational leadership
styles. Research findings also contribute to the overall image and information on leadership styles and job satisfaction
relationships in Bosnia and Herzegovina, which still lacks this type and form of research in terms of topic and data.
This study also sets good grounds and starting point for further research and examination of the relationship between
leadership styles and job satisfaction in the future. Data obtained in this research also provide valuable information for
Bosnia and Herzegovina’s food industry since no data was recorded earlier. As we can see from the results collected in
this scientific paper, the practical implications of this research indicate that the answers to the questions asked fully
supported the assumption of the importance of choosing a leadership style as the essence of the company. The assumed
results, the practical implications, suggest that the rest of the company will behave the way management takes a stand,
that is, through the company’s pyramidal structure.

LIMITATIONS AND STUDY FORWARD

Limitations of this research study include primarily the number of responses which should be greater for the
reliability of the results and conclusion. Also another limitation would be the number of companies in the food industry
in Bosnia and Herzegovina as well as their availability which could significantly contribute to and enrichen the results
and conclusions of this research. Another element that could contribute to the quality of this research would be the
division of food industry companies into branches that could give a clear vision of the practiced leadership styles
in specific branches of the food industry. In addition, it would be interesting to analyze the variable relationship in
different regions of Bosnia and Herzegovina, either by entity or canton. Future research could strengthen this study’s
findings, the proposed model’s validity, and the relationship found in this research study.

ACKNOWLEDGMENT
I want to thank Nereida Hadziahmetovic, my supervisor, for her constant support and advice. I thank my parents
and brother for their helpful advice and sympathetic ear. You are always willing to help me. Finally, I must thank my
friends for their unconditional support during this journey.

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